LG Electronics may cut 30 percent of its overseas mobile phone division staff, according to a South Korean media report. This drastic decision came because of the company’s attempt to reform its business and boost smartphone sales, as its mobile division continues to lose money.
The Korea Economic Daily also mentioned how the cuts mainly involved mobile marketing and purchasing jobs as well as the shuttering of some unprofitable outlets. The report added that LG is expected to make similar moves in its domestic business. It’s never good news when people lose their jobs, especially when it comes at the hands of the same bad leadership that supposedly turned down development of the first Android device (a rumor LG denies). When FierceWireless reached out to LG, company spokesman Ken Hong dismissed the report, calling it speculation. He later told the wireless site, “turning around our mobile operations is a top priority.”
LG’s mobile phone business has been generating operating losses for the past five quarters. LG shipped 24.8 million total handsets in the second quarter, up from 24.5 million in the first quarter but down from 30.6 million units in the year-ago quarter. In July LG said it expects to sell 24 million smartphones this year, down from a previous target of 30 million units; the company expects to sell 114 million handset units overall, well below its previous target of 150 million units.
I don’t know what’s going on with the folks over at LG, but they need to get themselves in gear. Every device released as of late, has been half-assed — remember the G2x’s screen bleeding debacle? The company better figure something out quickly or risk the prospect of losing any sort of mobile presence.
[via FierceWireless, pic]